Skills Development Cases

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Skills Development Cases
Yige zhang
1219313
ACCT 2113-01

Chapter 1
S1-1
1. What is the amount of net income for the year ended February 1, 2009? Net Income=$2,260,000,000
2. What is the amount of sales revenue was earned for the year ended February 1, 2009? Sales Revenue=$71,288,000,000
3. How much inventory does the company have on February 1, 2009? Inventory=$10,673,000,000
4. How much does The Home Depot have in cash on February 1, 2009? Cash=$519,000,000
5. The Home Depot’s stock is traded on the New York Stock Exchange under the symbol HD. What kind of company does this make The Home Depot? The Home Depot is a public corporation.
S1-2
1. Was Lowe’s net income for the year ended January 30, 2009, greater (or less) than The Home Depot’s? Low’s net income=$2,195,000,000
The Home Depot’s net income=$2,260,000,000
After comparing these two, Low’s is less than The Home Depot’s. 2. Was Lowe’s sales revenue for the year ended January 30, 2009, greater (or less) than The Home Depot’s? Lowe’s sales revenue=$48,230,000,000

The Home Depot’s sales revenue=$71,288,000,000
After comparing these two, Low’s is less than The Home Depot’s. 3. Did Lowe’s have more (or less) inventories than The Home Depot at the year ended January 2009? Lowe’s inventories=$8,209,000,000

The Home Depot’s inventories=$10,673,000,000
After comparing these two, Low’s is less than The Home Depot’s. 4. Did Lowe’s have more (or less) cash than The Home Depot at the year ended January 2009? Lowe’s cash=$245,000,000
The Home Depot’s cash= $519,000,000
After comparing these two, Low’s is less than The Home Depot’s. 5. Is Lowe’s the same type of business organization as The Home Depot? Yes, both of these two are public corporations which provide home improvement. 6. On an overall basis, was Lowe’s or The Home Depot more successful in the 2008 fiscal year? The Home Depot was more successful in the 2008 fiscal year based on an overall basis. Because The Home Depot’s net income, sales revenue, inventories, cash are more than Lowe’s.

Chapter2
S2-1
1. What is the company’s fiscal year-end? Where did you find the exact date? The company’s fiscal year ends on the Sunday nearest to January 31. Fiscal years ended February 1, 2009, and January 28, 2007, which include 52 weeks. Fiscal year ended February 3, 2008, which includes 53 weeks. I found in the exact date from notes to consolidated financial statements. 2. Use the company’s balance sheet to determine the amounts in the accounting equation (A=L+SE). February 1, 2009: $41,164,000,000=$23,387,000,000+$17,777,000,000 February 3, 2008: $44,324,000,000=$266,610,000,000+$1,771,400,000 3. What is the amount of the company’s current liabilities on February 1, 2009? Are current assets sufficient to cover current liabilities? Current liabilities=$11,153,000,000

Since the current assets are greater than the current liabilities, current assets are sufficient to cover current liabilities. 4. Has financing for the company’s investment in assets primarily come from liabilities or stockholders’ equity? It comes from liabilities.

S2-2
1. Use the company’s balance sheet to determine the amounts in the accounting equation (A=L+SE). Is Lowe’s or The Home Depot larger in terms of total assets? The Home Depot
February 1, 2009: 41,164,000,000=23,387,000,000+177,777,000,000 February 3, 2008: 44,324,000,000=26,610,000,000+17,714,000,000 Lowe’s
January 30, 2009: 32,686,000,000= 14,631,000,000+18,055,000,000 February 1, 2008: 30,869,000,000= 14,771,000,000+16,098,000,000 The Home Depot is larger in terms of total assets.
2. Does Lowe’s have more or less current liabilities than The Home Depot at the end of January 2009? Which company has a larger current ratio? Lowe’s has less current liability than The Home Depot at the end of January 2009. The Home Depot has a larger current ratio.

3. On the balance sheet, Lowe’s reports inventories of...
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